- DA leader Mmusi Maimane has written a letter to President Cyril Ramaphosa about the cost of living which is ‘spiralling out of control’
- Maimane blames the ANC’s financial mismanagement for the current state of the economy
- The DA leader pleads with Ramaphosa to reduce the fuel price immediately by reducing the fuel levy by 20%
Democratic Alliance (DA) leader Mmusi Maimane has written a letter to President Cyril Ramaphosa about the cost of living in South Africa which he describes as ‘spiralling out of control.’ In the letter, Maimane lists various taxes, tariffs and levies being increased in recent times as a war against the poor.
Maimane called on Ramaphosa to reduce the current record-high fuel price immediately by cutting the general fuel levy and the Road Accident Fund (RAF) levy by 20%. Maimane claims that doing this would reduce the petrol price to below R15.00 per litre.
Maimane contends that should Ramaphosa have the political will to reduce the fuel levy it would be possible. Maimane notes that the Constitution allows for the minister of finance to introduce an adjusted budget at any time of his choosing.
Briefly.co.za gathered that the DA leader pointed out that the African National Congress (ANC) recently called on the government which it controls to take bold action in the current economic crisis. He said this showed that the ANC was trying to distance itself from its own failures.
In an unprecedented move the ANC called on its own government to take bold action to deal with the rise in fuel prices and the expected rise in the costs of food and basic consumer goods. The ANC said there were certain mechanisms the government could enable to restart economic growth.
Maimane said poor and working-class South Africans were paying for the financial mismanagement of the ANC-led government and blamed the record-high fuel prices on a money-hungry administration.
Thesouthafrican.com reported that Maimane pointed out that with petrol costing R16.02 per litre the government received R5.28 of that amount through the various taxes and levies. He said this served as proof that once again the poorest South Africans were forced to pay the highest price for the ANC’s corruption.
Maimane further pleads with Ramaphosa to balance the South African budget by ridding the government of corrupt officials and by implementing more efficient governing procedures rather than raising taxes and hurting the poor.
The DA leader has also called for a Parliamentary debate on the best way to restructure fuel levies and taxes. Maimane admits that it would not be feasible or in the national interest to get rid of the fuel levy entirely.
Maimaine pointed out to some of the achievements programs which his party had launched in the Western Cape and Gauteng as examples of what the government could achieve with the correct political will.
Despite the recent leadership struggle in Cape Town, Maimane used the city as an example of what could be achieved in other metros across the country. He listed the city's free transport for job seekers as one of many programs enacted to help ordinary people.
Last week, Ramaphosa announced that he had established an inter-ministerial task team which would announce measures aimed at reducing the impact of the rising cost of living on millions of already strained consumers.
Economists expect the task team to expand the VAT exempt list to include more basic food and consumer goods.
Ramaphosa also revealed a possible deal with Ghana which would allow South Africa access to cheaper oil. The deal will see the South African government directly invest in new oil explorations in the West African nation.
The expected pay-off for this investment would be a gauranteed cheap supply of crude oil.
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